If you run a hearing health care business, you need to make money.
That’s not greed talking — if your passion is helping other people through better hearing, you will need to pay employees, keep the lights on, and many other things.
In a similar vein, talking profit is sensible — you need to invest in your business to improve technology, hire additional staff as you grow, and more.
In fact, every business needs to be mindful of its profit margin: sales compared to expenses. It’s not just a number — it’s the heartbeat of your company’s financial health. Finding your sweet spot is critical.
But if you’ve tried to research how to improve your profit margin, you know it’s all too easy to get tripped up in information overload: profitability ratios? Intangible assets? Gross, operating, and net profit margins?
So let’s cut through the clutter: Here are three quick strategies to fortify your profit margins for long-term success.
Know Your Value
You need to know what you offer your market.
Do you have the lowest prices in town and maintain your revenue through volume? Or do you focus more on the value you provide and maintain pricing that reflects this? Whichever it is, stake your claim there.
Your prices should reflect your value — don’t mix and match. Offering high prices but trying to churn out high volume as well just doesn’t work, for you or your patients.
But don’t be afraid to adjust your pricing to remain competitive yet profitable. It can make all the difference between red and black at the end of the financial year.
Cultivate Patient Relationships
You current patients are your assets. Foster those relationships.
Acquiring new patients usually comes with a hefty price tag. Regular engagement and follow-up with your current patients leads to repeat business, saving you marketing dollars and boosting your profit margins.
You know it to be true: Without maintenance, there’s no growth.
Know Your Product Mix
It’s critical to have a clear grasp of which of your products drives the most profitability. It can be the game-changer you need. This knowledge helps you strategically drive your sales — or upselling — efforts toward the most financial gains.